Commercial Property Depreciation Schedules
What Does A Commercial Depreciation Schedule Cost?
It depends.
As you can imagine, the time it takes us to prepare a Commercial Property Depreciation Schedule for small warehouse will be less than it took to do that fish farm.
We quote each individual commercial property Depreciation Schedule on a case-by-case basis. Just give us the address, answer a few simple questions and we’ll provide a free no-obligation quote. In many cases we can also provide an indicative depreciation figure if we have enough information.
If we don’t think a job is worth doing, we’ll tell you.
How Long Does It Take To Get A Commercial Depreciation Schedule?
Again, it depends.
Access can be an issue, especially if we are doing the Schedule for just the landlord and not the tenant.
Once we have done the inspection, though, things move quickly and we can complete Commercial Property Depreciation Schedules within five working days. If it’s urgent, just let us know and we will speed that up.
You Can Even Claim Common Property
A lot of people miss this with commercial properties.
If the property is part of a strata scheme, there is common area ‘building’ and Assets to be claimed.
Even with a small factory unit, if it is part of a complex there will often be driveways and hardstand, fencing, fire services, card readers, security cameras, gate motors etc.
Because we use quantity surveyors to carry out inspections and not data collectors, we capture those things.
When You’ve Owned a Commercial Investment Property for a Long Time
If you’ve owned your commercial property for a while and haven’t been claiming depreciation, all is not lost. We frequently speak with clients in this situation and generally it doesn’t complicate things very much at all. It’s just as easy for us to start a Depreciation Schedule today as it is for us to start one, say, five years ago.
Your accountant may then need to amend some previous tax returns. The ATO allow two prior financial years to be submitted or amended with no questions asked. Going back further than this can be possible, but you’ll want to check with your accountant. We’ve done schedules going back several years when requested, there’s no additional charge.
Like most things, it’s best to get started sooner rather than later to ensure you’re not leaving money on the table.
Commercial Property Depreciation Frequently Asked Questions
Is depreciation different for commercial vs residential property?
Yes. The 2017 changes to depreciation did not affect commercial properties, so second-hand Assets (Plant and Equipment) in commercial properties can still be depreciated. The changes in the 2026 Budget will also allow commercial properties to be negatively geared.
What happens if the landlord pays a Fitout Incentive?
If the landlord pays their tenant a Fitout Incentive, it may be part of their agreement that a Depreciation Schedule will need to be prepared for the landlord at the tenant’s cost. We prepare Depreciation Schedules regularly for this scenario. In most cases, the parts of the fitout that are more “permanent” parts of the structure are attributed to the landlord, for example, vinyl flooring, ceiling tiles, bathroom updates etc.
Can a landlord claim a tenant’s improvements?
If the tenant’s lease is still in place, and the tenant is in occupation of the property, a landlord cannot claim depreciation on a tenant’s improvements that the tenant has paid for.
If the landlord has paid an Incentive for the tenant’s improvements, the landlord may claim depreciation on the improvements paid for by the Incentive.
How long does a commercial depreciation schedule last?
It depends on the nature of the property. Properties used for manufacturing purposes, short term traveller accommodation and build to rent development projects can depreciate for 4% over 20 years from when the property was built. All other commercial properties depreciate at 2.5% over 40 years.
When can I claim 4% depreciation vs 2.5%?
Properties where manufacturing activities take place are eligible to claim the 4% to account for the additional wear and tear to the building as a result. Read more on this here.
Short Term Traveller Accommodation properties are also eligible to claim the 4% as determined by the nature of the property and it’s intended use, for example, a hostel with dormitories. Read more on this here.
Build to Rent Development projects that are approved by the ATO may also be eligible for the accelerated depreciation for Capital Works. These tend to be very large projects, often owned by developers. Read more here from the ATO.
